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This chapter presents a study which used data from the U.S. National Longitudinal Survey of Youth (NLSY) to examine racial differences in the effects of college quality and student diversity on wages. The study investigated whether the economic benefit of college quality might be higher for groups helped by diversity programs and whether a racially diverse student body would directly benefit all students. The NLSY provided data on student characteristics and demographics, student ability, college attended, and post-college wages. For each respondent who attended college, researchers collected data on college characteristics from the U.S. Department of Education's Integrated Postsecondary Education Data System and U.S. News and World Report's Directory of Colleges and Universities. There was a much larger effect of college quality on the later wages of blacks than non-blacks. Attending a college with moderate student diversity, as measured by the fraction of black students, raised earnings for both black and non-black men. For women, there was a weaker effect that applied only to black women. In regard to the effects of college quality on black and non-black students, there was an effect on black male students from three to four times as large as that for non-black male students. (SM) Copyright ERIC.